Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia

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A sustained high growth rate of gross domestic product at a low inflation is one of the main goals of the majority of macroeconomic policies, so keeping the price stability plays an important role in determining the growth rate of output. This paper empirically investigates effects of fiscal deficit...

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Detalles Bibliográficos
Autor: Nguyen, Van Bon
Formato: artículo
Fecha de Publicación:2015
Institución:Universidad ESAN
Repositorio:Revistas - Universidad ESAN
Lenguaje:inglés
OAI Identifier:oai:ojs.pkp.sfu.ca:article/178
Enlace del recurso:https://revistas.esan.edu.pe/index.php/jefas/article/view/178
Nivel de acceso:acceso abierto
Materia:Fiscal deficit
Broad money M2 supply
Inflation
PMG estimation
Differenced panel GMM estimator
Asian countries
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spelling Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of AsiaNguyen, Van Bon Fiscal deficitBroad money M2 supplyInflationPMG estimationDifferenced panel GMM estimatorAsian countriesA sustained high growth rate of gross domestic product at a low inflation is one of the main goals of the majority of macroeconomic policies, so keeping the price stability plays an important role in determining the growth rate of output. This paper empirically investigates effects of fiscal deficit and broad money M2 supply on inflation in Asian countries, namely Bangladesh, Cambodia, Indonesia, Malaysia, Pakistan, Philippines, Sri Lanka, Thailand, and Vietnam in the period of 1985-2012. By applying the Pooled Mean Group (PMG) estimation-based error correction model and the panel differenced GMM (General Method of Moment) Arellano-Bond estimator, the study finds out broad money M2 supply has significantly positive impact on inflation only in the method of PMG estimation whereas fiscal deficit, government expenditure and interest rate are the statistically significant determinants of inflation in both methods of estimation. Doi: http://dx.doi.org/10.1016/j.jefas.2015.01.002Universidad ESAN2015-06-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed Articleapplication/pdfhttps://revistas.esan.edu.pe/index.php/jefas/article/view/178Journal of Economics, Finance and Administrative Science; Vol. 20 No. 38 (2015): January-June; 49-53Journal of Economics, Finance and Administrative Science; Vol. 20 Núm. 38 (2015): January-June; 49-532218-06482077-1886reponame:Revistas - Universidad ESANinstname:Universidad ESANinstacron:ESANenghttps://revistas.esan.edu.pe/index.php/jefas/article/view/178/246Copyright (c) 2015 Journal of Economics, Finance and Administrative Sciencehttps://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:ojs.pkp.sfu.ca:article/1782021-08-18T01:43:42Z
dc.title.none.fl_str_mv Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
title Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
spellingShingle Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
Nguyen, Van Bon
Fiscal deficit
Broad money M2 supply
Inflation
PMG estimation
Differenced panel GMM estimator
Asian countries
title_short Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
title_full Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
title_fullStr Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
title_full_unstemmed Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
title_sort Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
dc.creator.none.fl_str_mv Nguyen, Van Bon
author Nguyen, Van Bon
author_facet Nguyen, Van Bon
author_role author
dc.subject.none.fl_str_mv Fiscal deficit
Broad money M2 supply
Inflation
PMG estimation
Differenced panel GMM estimator
Asian countries
topic Fiscal deficit
Broad money M2 supply
Inflation
PMG estimation
Differenced panel GMM estimator
Asian countries
description A sustained high growth rate of gross domestic product at a low inflation is one of the main goals of the majority of macroeconomic policies, so keeping the price stability plays an important role in determining the growth rate of output. This paper empirically investigates effects of fiscal deficit and broad money M2 supply on inflation in Asian countries, namely Bangladesh, Cambodia, Indonesia, Malaysia, Pakistan, Philippines, Sri Lanka, Thailand, and Vietnam in the period of 1985-2012. By applying the Pooled Mean Group (PMG) estimation-based error correction model and the panel differenced GMM (General Method of Moment) Arellano-Bond estimator, the study finds out broad money M2 supply has significantly positive impact on inflation only in the method of PMG estimation whereas fiscal deficit, government expenditure and interest rate are the statistically significant determinants of inflation in both methods of estimation. Doi: http://dx.doi.org/10.1016/j.jefas.2015.01.002
publishDate 2015
dc.date.none.fl_str_mv 2015-06-01
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://revistas.esan.edu.pe/index.php/jefas/article/view/178
url https://revistas.esan.edu.pe/index.php/jefas/article/view/178
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://revistas.esan.edu.pe/index.php/jefas/article/view/178/246
dc.rights.none.fl_str_mv Copyright (c) 2015 Journal of Economics, Finance and Administrative Science
https://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2015 Journal of Economics, Finance and Administrative Science
https://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidad ESAN
publisher.none.fl_str_mv Universidad ESAN
dc.source.none.fl_str_mv Journal of Economics, Finance and Administrative Science; Vol. 20 No. 38 (2015): January-June; 49-53
Journal of Economics, Finance and Administrative Science; Vol. 20 Núm. 38 (2015): January-June; 49-53
2218-0648
2077-1886
reponame:Revistas - Universidad ESAN
instname:Universidad ESAN
instacron:ESAN
instname_str Universidad ESAN
instacron_str ESAN
institution ESAN
reponame_str Revistas - Universidad ESAN
collection Revistas - Universidad ESAN
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 12.902196
Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
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